#Georgieva – Federal Financial Analytics

10 05, 2022

DAILY051022

Eliza Allen2023-02-21T15:41:13-05:00May 10th, 2022|2- Daily Briefing|

HFSC Looks at NSRO Competition, Insurance Ratings

The HFSC Investor Protection Subcommittee hearing on bond markets reopens debate about the credit rating agencies that is unlikely to end in substantive action despite continuing Democratic displeasure with these agencies and the SEC standards mandated for them by the Dodd-Frank Act (see Client Report RATINGS49).

FinCEN Under Still More Beneficial-Ownership Pressure

Picking up on a theme at a recent HFSC hearing, Sens. Warren (D-MA), Grassley (R-IA), and over a dozen bipartisan senators sent a letter to Treasury demanding faster action on stalled beneficial-ownership disclosure rules. Acknowledging that FinCEN lacks the resources it needs, the senators nonetheless demand action in part to ensure effective anti-Russia sanctions enforcement.

IMF Head Calls for New Global Payment-System Infrastructure

In remarks today, IMF Managing Director Kristalina Georgieva identified financial-market fragmentation in the wake of Russian sanctions as the threat to the global order also discussed in a recent Petrou op-ed.

Daily051022.pdf…

DAILY041822

Eliza Allen2023-03-02T10:50:00-05:00April 18th, 2022|2- Daily Briefing|

IMF Flags Systemic Sovereign-Debt Exposures, New Doom Loop

The IMF’s new assessment of global markets includes a very troubling finding: the doom loop is reverberating in several systemically significant nations. Although the report seemingly targets emerging markets, its chart combining nations with high sovereign debt and domestic banks with large national sovereign-debt holdings includes India, Brazil, Argentina, Mexico, as well as several smaller nations. Countries in which domestic banks have large sovereign-debt exposures relative to capital include Hungary, Poland, Turkey, Brazil, Thailand, India, and seven others.

IMF Panel Highlights Disagreements on CBDC Designs

At a session today on cryptoassets and CBDC during the IMF annual meetings, Managing Director Georgieva noted that the future of money was virtual, but emphasized that the need for interoperability, agile regulation, and protections against money laundering and terrorism pose the biggest barriers for governments. Three government officials actively engaged in this arena also spoke, making it clear that broader disagreements create challenges for many cross-border aspects of digital innovation. Roberto Campos Neto, the President of the Brazilian Central Bank, endorsed retail CBDC as a tool to increase inclusion along with payment speed and security, a point echoed in a recent BIS CBDC analysis (see Client Report CBDC11).

Daily041822.pdf…

Daily020922

Arezou Rafikian2023-04-05T11:42:19-04:00February 9th, 2022|2- Daily Briefing|

Global Regulators Demand Fast Capital Rewrite
Reinforcing his chairman’s comments yesterday, the Basel Committee and its supervising panel of central bankers today stressed the need for national action on the Basel III/IV package. The global bodies also reiterated the need for “full, timely, and consistent” action, with these calls sure to speed U.S. inter-agency deliberations as soon as the Federal Reserve’s board fills out with a new supervisory vice chair.

Senate Ag Ready to Engage on SEC/CFTC Crypto Jurisdiction
The Senate Agriculture Committee today held a hearing examining the CFTC’s authority to govern cash digital assets, with Members on both sides agreeing that it is vital to clarify the distinctions between securities and commodities law to ensure that the CFTC can intervene where appropriate to ensure stability and consumer protection. Chairwoman Stabenow (D-MI) acknowledged bitcoin’s financial-inclusion potential, but also noted an array of risks such as those to the climate, volatility, fraud, and insider trading.

IMF Discounts CBDC Inevitability
The IMF today released a comprehensive report on CBDC, the results of which led Managing Director Kristalina Georgieva to conclude that a central-bank digital currency is not an inevitable outcome of digital transformation.

Daily020922.pdf…